Global aluminum production could exceed demand in 2020, Sumitomo predicts

This year aluminum production in the world may exceed demand, predicts Sumitomo Corp. Japanese trading house.

The surplus may reach 756 thousand tons, compared with a shortage of metal of 1.165 million tons in 2019. At the same time, supplies are expected to grow by 5.3%, including on account of China, as well as manufacturers from South and North Americas.

The increase in demand is estimated at 2.3%. The surplus in the global aluminum market may persist at least until 2023, experts say. The U.S.-China trade war reduced global metal consumption by 0.3% In 2019, the first decline in 30 years.

Sumitomo predicts average aluminum prices in 2020 in the range of $ 1,700 to $ 1,800 per ton, according to Bloomberg

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